Aprox. Value: Based on Dacheng’s 2010 net profit after tax (NPAT), as calculated under US GAAP, the Company would pay up to US$80.0 million, in a mix of cash and the Company’s ordinary shares, to Dacheng’s shareholders.

Details: KongZhong Corporation has entered into a definitive agreement to acquire Shanghai Dacheng Network Technology Co., Ltd. The transaction is expected to close in the first quarter of 2010.

Prior to the closing of the transaction, Dacheng will engage in a reorganization whereby an offshore holding company will be established, and Dacheng will enter into certain contractual arrangements with such holding company and/or its subsidiaries. The Company will purchase 100% of the outstanding equity interest of such holding company upon the completion of the reorganization.

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